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DeliciousProcurement is the key to recovery, says the OGC
Wednesday, February 18, 2009
Public sector procurement has a major role to play in helping to maintain the UK's place as a leading economy, while at the same time making taxpayers' money work harder.
The Office of Government Commerce (OGC) is at the forefront of driving greater efficiencies from the £175bn of government spend on third party goods and services and has recently set out a three- year plan that builds on transforming government procurement.
The plan shows how the government will help to ensure procurement value for money while at the same time provide a reliable and supportive partner for business.
The OGC's agenda sets out six key targets:
• To deliver value for money from third party spend
• To deliver projects to time, quality and cost
• To get the best from the government estate
• To improve the sustainability of the government estate and operations
• To support the delivery of government policy goals
• To improve central government capability in procurement, project and programme management, and in estates.
The OGC is bringing procurement out of the shadows by delivering procurement capability reviews which promote good practice and continuous improvement.
We are also continuing the work of building a strong and relevant government procurement service (GPS) – creating and maintaining a sustainable balance of appropriately skilled and suitably managed procurement professionals.
The OGC is fostering new talent through the government procurement graduate scheme; the fast stream procurement placement option; the creation of a skills development directory; and a reward project for procurement professionals.
Better-informed and more capable procurement professionals will enhance the ability of government to come up with the best procurement solutions for the public sector and its business partners.
An example of the work being undertaken by the OGC and the GPS is a new framework for managing contracts. This is particularly relevant for long-term contracts where customers need to ensure that service levels and value for money are maintained. The framework will provide the foundation for the OGC's forthcoming revised guidance on contract management.
The OGC has already published three guides to help procurers with decision-making in areas including sustainability, social issues and equality. We will also publish an assessment framework to enable public procurers to decide when, how and with what priority to address policy agendas by using public procurement as a lever. We will also agree strategies with key Whitehall stakeholders on all policy-through-procurement agendas.
An example of the work the OGC has already been involved with in this area has been to find ways to help small and medium enterprises (SMEs) get better access to public sector contracts. SMEs are a major part of the UK economy and can play an important role in helping the government achieve value for money from its spend.
Following the Glover Review into SMEs' access to public sector contracts, 12 recommendations have been made. For example, the government is introducing measures to reduce bureaucracy and make opportunities more transparent for small businesses. It is also making it mandatory to advertise contract opportunities above £20,000 electronically, and making them accessible through a single, easy-to-search online portal.
The OGC has also been looking at other issues in a bid to improve value for money for the taxpayer and help businesses get the best from contracts with the government: The OGC's construction team, for example, is working with public sector clients and industry to improve the planning and delivery of construction procurement, to embed best practice principles and to measure performance in the delivery of construction projects. The team has also developed the public sector construction database to facilitate construction programme management.
The OGC has supported the Cabinet Office's transformational government initiative on supplier management. Our common assessment frame-work has tracked the performance of government as a client and its key ICT suppliers. As a result, performance improvement plans have been developed with key ICT suppliers in conjunction with key departments.
Last year, the OGC also launched its supplier feedback service which invites suppliers of public sector goods and services to comment on areas of poor practice. The service has already helped the government become a better customer and the OGC aims to further promote its use.
The OGC is very mindful of the current economic climate and believes its agenda is crucial to helping the public sector meet the challenges ahead. We are here to support government departments and the wider public sector, while at the same time opening up opportunities for business.
Nigel Smith is chief executive of the Office of Government Commerce
I am a small firm who over the years has trained young bricklayers to a very high standard,i have lots of ideas that could save our goverment lots and lots of money with the supply of labour cost! and would like the oppertunity to prove that my ideas work.my ideas will help and train young people in to all aspects of the building trade,including useing prisoners as a form of very cheap labour and possible rehabilitation!!it would meen having the right key players in place and it would work.also reducing the high proffits of contractors that deal with all the differant trades on each project,with the internet one person and a office on site can do the same job with moor attention to detail.I hope nigel smith gets to read this and makes it posible for me to prove my theory?it can be called building the future.given the chance and some help from you let me make this happen? if projects come in under budget then thats got to be good.also eliminating the way people think on site "if we dont spend the budget then we wont get it again next year"costain.mentioning no names.
mark evans - clevdon,uk,diamond construction
Food Waste Recycling bags - We run a small company who are continually researching for new products that in the long run will save spend of public funds. Having been involved in an e-auction as well as written submitted tenders for local authorities - ONE MAJOR POINT STANDS OUT - the lack of knowledge of what to purchase by those with the task of awarding tenders. Unless there are standards and product information available and a full understanding of what product does what, it is pointless participation in these forms of gaining business by SME's. Larger Corporations are gaining a high majority of these tenders as they can afford to price there goods as loss leaders just to secure the tenders. Thus the practice of best price overturns the quality of the products on offer and even knowingly that your product is a first for the UK, cost effective and tested to perform at high levels, the waste officers and departments are not sufficiently educated to what is really on offer. Due to the current economic climate many are forced to accept on price - but are they really saving in the long run. Recycling is an important issue to everyone in the country and yet the current manner of awarding contracts on price, as well as size of organisation (balance sheet, trading history etc)is ensuring that the big get bigger and the future entrepeneurs and SME's of this country are being sideswiped. If only a better understanding of requirements, regulations and all items of importance are fully understood, and fed through we will just be creating a repetitive roundabout for sustaining the corporates in this country. On a percentage points system of product value and efficacy purporting to be around the 70% norm for tenders - how can decisions be made on an e-auction or written tender application if the product they are assessing is not fully understood by those making important decisions on purchasing. It is all down to price and total value of the contract – people cut more off their prices than the other where it becomes a high risk betting system. Participating in an e-auction is terryfying for an owner of a small business - although the overheads of such companies are hugely smaller than corporates, profit margins are set sufficiently to hopefully make some small profit, and with all the will in the world there is very little hope for a SME competing for business with corporates who are cutting prices, product quality and benefits - we are lost in this mire. Food waste bags are regulated under EN13432 - the majority of products available are starch based, but they do not declare if they contain polythene or any other composite that would be discovered after the door has been closed. Then there is the issue of liquid leaks from food waste and many other issues that would not be considered by the people making the decision on product quality as they do not fully understand.
We have the first bag in this country that is registered under EN13432, does not contain starch, has no polythene, hold liquids, hot liquids up to 75degrees, 10 micron strength(starch bags minimum is 15microns)an element relating to costs - a brilliant innovation that was born out of listening to what was required to assist in end users operating efficiently - but most importantly of all justifying the expense through quality and efficiency and demontrating to the householder that their local authority were not only spending public funds correctly, but giving them the correct tools to ensure the increases in recycling were achieved. How can all of this be acceptable when you end up as a competing number on an e-auction, an unknown entity on a written tender and your product is not fully appreciated due to the lack of knowledge that these poor people have, to only ensure that the price is right. So come on Mr Smith - we need urgent changes to procurement, we need decision makers to be educated, and we as SME's need more support to be able to demontrate new technology and products that are not just based upon the end costs. We keep on trying and will not give up but a miracle is required for any of us to just secure a small portion of the contract values available and promoted as a means to sustainability and the satisfaction that hard work, research and innovation will one day be a contributing factor to successfully supplying goods to procurement departments, waste officers and everyone involved in obtaining best value for money, not just on price. We keep hoping that one day we will become a corporate but our ethos would not change as long as we maintain control of our business. I hope that this is printed and that other SME’s experiencing any of the above pitfalls will become vocal.
WE NEED A BETTER UNDERSTANDING.
NADEAN POSTLETHWAITE - Caerphilly, South Wales, UK,
I wish Nigel well in his drive to cut cost in so much of the Public Sector.
At this time, more than ever, we, the Customers, all demend more for less.
Please pass on my personal regards as Nigel is an old friend
John Bradshaw - Staunton, Gloucestershire